Written by Joey Frenette at The Motley Fool Canada
Chasing red-hot stocks in search of outsized near-term gains is a dangerous game that many new investors should not seek to play. Instead, it makes more sense to invest one’s Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) funds for the extremely long haul. At the end of the day, beating markets on any given week or month is hard. It takes a lot of luck to do it, and unless you’ve got a crystal ball, you’ll probably find your efforts are better put towards finding shares of great businesses and buying them whenever their market values are considerably less than their intrinsic value.
Undoubtedly, finding dirt-cheap gems doesn’t have to be hard. However, the allure of quick profits in the face of a roaring bull market is hard if you don’t have discipline and the patience to wait for the perfect opportunities to come your way….
